EFRAG commented on the IFRS Foundation Consultation Document on Criteria for Annual Improvements to IFRSs
07 December 2010
The EFRAG Supervisory Board issued its final comment letter on the IFRS Foundation Consultation Document on Criteria for Annual Improvements to IFRSs, Proposed Amendments to the Due Process Handbook for the IASB.
EFRAG welcomes the initiative to formalise the criteria in the IASB Due Process Handbook for determining whether a matter relating to the clarification or correction of IFRSs should be addressed using the annual improvement process.
EFRAG notes that extensive use of annual improvements procedures raises questions about the stability and quality of the original underlying standards. The IASB should ensure that final standards are of high quality and that the need for annual improvements or interpretations is kept to a minimum by an adequate use of field testing and effect studies and other forms of impact assessments during the standard setting process (before the standards are final).
In addition to commenting on the proposals set out in the consultation document, EFRAG calls on the Trustees for the Due Process Handbook to include more stringent criteria for due process, relating to those agenda decisions that result in other amendments to standards, as well as imposing limitations in the development of amendments once an agenda decision has been made.
Press release
© EFRAG - European Financial Reporting Advisory Group
